TYLER, TX (KLTV) - The government has extended the $8,000 first-time homebuyer tax credit,
"Anything you can put in your pocket is a help, for sure," said Jason Glasscock.
He and his family are looking to buy a new home. But first, they have to sell their old home.
They put it on the market a couple of weeks ago. There have been a few showings. All the Glasscocks need is a contract.
Thanks to the extension, they're getting some help.
According to the Internal Revenue Service, eligible taxpayers must buy a replacement home, or enter into a contract to buy a principal residence by April 30, 2010, and close by June 30, 2010.
First-time buyers can still qualify for the $8,000 credit. For the first time, long-time homeowners can claim up to $6,500 (up to $3,250 for married couple for married taxpayers who file separately). Long-time homeowners have to have lived in their previous home for five consecutive years.
"The market has been sluggish, so this is something to give us a little boost," said Nikki Perryman, a Tyler realtor.
The expanded credit also raises previous income restrictions, but only for homes purchased after Nov. 6, 2009. The credit phases out for individual filers with incomes between $125,000 and $145,000 ($225,000 and $245,000 for couples). Homes bought *after Nov. 6th. Tyler
With new rules, come new restrictions. Dependents are not eligible for the credit. If the home is worth more than $800,000, the tax credit can not be applied. Taxpayers have the option of claiming their credit on their 2009, or 2010 tax returns.